Regions annual meeting: what did shareholders ask?

BIRMINGHAM, Alabama -- Regions Financial Corp. (NYSE: RF) held its annual meeting at its downtown Birmingham headquarters Thursday. And while procedural items were uneventful -- directors were elected, the compensation plan was approved -- several shareholders in the audience had questions for Regions CEO Grayson Hall.

Here's what was discussed.

1. Fees on checking accounts

A local entrepreneur asked about the fees on his checking account, and wondered whether the bank was losing customers as a result of its account policies.

"We are growing customers today," Hall said. Hall acknowledged that banks used to offer more free account options across the industry, but a changing banking environment has necessitated a changing business strategy.

"We realize we've got to build a different business model," Hall said.

2. Low interest rates

A depositor with the bank asked Hall how the bank was handling the current environment of low interest rates. (As of this month, the constant maturity rate on a 30-year Treasury is below 3 percent, down from 5 percent before the recession began.)

Despite low rates, Hall says Regions has "more liquidity than we ever have." In fact, the bank's ratio of loans to deposits is currently around 78 percent, which Hall called the lowest such ratio of his career.

"We have not seen a material drop in our deposits," Hall said.

3. Acquisition talks

How is Regions defending against a possible takeover by some other banking company?

"The best defense is a good offense," Hall said. Despite the fact that any public company faces the possibility of a takeover, Hall said Regions is proving to outside parties that it deserves independence by growing its own business.

"We're focused on organic growth," Hall said.

4. Minority-owned businesses

What is Regions doing to help minority-owned businesses grow? Hall said the bank has a dedicated small business banking team across its 16-state footprint, and noted that many small businesses are owned and operated by minorities.